71% of Portfolio Managers Unable to View Performance Attribution of ESG Factors, finds RiskFirst Survey

Research shows industry demand for integrated performance attribution of traditional and ESG factors.

RiskFirst, a Moody’s Analytics company, has today published research that finds 71% of portfolio managers are currently unable to view the performance attribution of ESG investment factors.

The research, which looks at portfolio managers’ ability to see the impact on investment performance of ESG factors alongside traditional factors, also shows that only 15% have complete visibility of ESG factors for performance analysis, while a further 15% said they can view ESG factors, but only on a limited basis.

The findings align with rising demand among investment managers for better visibility of drivers behind portfolio performance in real time.

"Having a consistent, accurate—and customizable—view of performance of both ESG and traditional factors is crucial for investment managers, to help them identify their performance drivers. It’s all about enabling better insight to discover new opportunities and for clear performance communication with the end-investor," commented Owais Rana, US Business Development at RiskFirst.

Matthew Seymour, CEO of Risk First, added: "With seismic shifts in investor demand, coupled with rising regulatory pressure, investment managers must adapt to meet ESG preferences of their clients and regulators or risk being left behind. As an increasingly attractive investment option, the importance of having the right tools in place to understand both ESG and traditional factors cannot be overstated."

Acquired by Moody’s in 2019, RiskFirst’s products allow institutional investors to better evaluate risk and understand portfolio performance, enabling better investment decisions.

Learn more about RiskFirst.

Learn more about Moody’s ESG tools and analytics.

Notes to Editors

The study, commissioned by RiskFirst, was conducted by SIGNET RESEARCH, INC. via the February 10, 2020 issue of PENSIONS & INVESTMENTS.

About Moody’s Analytics

Moody’s Analytics provides financial intelligence and analytical tools to help business leaders make better, faster decisions. Our deep risk expertise, expansive information resources, and innovative application of technology help our clients confidently navigate an evolving marketplace. We are known for our industry-leading and award-winning solutions, made up of research, data, software, and professional services, assembled to deliver a seamless customer experience. We create confidence in thousands of organizations worldwide, with our commitment to excellence, open mindset approach, and focus on meeting customer needs. For more information about Moody’s Analytics, visit our website or connect with us on Twitter or LinkedIn.

Moody's Analytics, Inc. is a subsidiary of Moody's Corporation (NYSE: MCO). Moody’s Corporation reported revenue of $4.8 billion in 2019, employs approximately 11,300 people worldwide and maintains a presence in 40 countries.

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